Is it hard to get a commercial property loan?

Applying for a commercial mortgage can be slow and often requires a lot of documentation. At the other extreme, you might be able to secure a hard-money loan in days without producing copious financial information. In general, banks and lenders will require you to provide this common information: Business tax returns.

What credit score is needed to buy a commercial property?

The minimum required FICO Small Business Scoring Service (SBSS) credit score is 155 for the SBA 7(a) loan, the government agency’s flagship loan program, although there are plenty of exceptions that allow small businesses to get a loan with a score lower than the minimum.

What kind of loan is a commercial property?

As with a residential real estate loan, a commercial property loan is a type of mortgage that is secured by a lien on the commercial property. Investing in commercial real estate can be a costly affair because many office buildings and retail outlets are sold at a higher price than their residential counterparts.

Can a small business get a commercial real estate loan?

To qualify for a commercial real estate loan, your small business will usually be required to occupy at least 51% of the building. Otherwise, you should be applying for an investment property loan instead, which are appropriate for rental properties.

Can a business owner get a mortgage on a commercial property?

Without a commercial mortgage loan, though, most business owners don’t stand a chance of purchasing a commercial property. Thankfully, commercial real estate loans are available that can make these dreams a reality—even if you don’t have cash or other assets to secure the loan.

What are the requirements for a 100% commercial loan?

The key is that the property must be at least 51% or more owner occupied by your business. In other words, your business and/or your employees must legitimately occupy 51% or more of the building. (Ground up construction requires the business initially occupy at least 60% of the total square footage per SBA rule).